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After the Auction: Dealing With Damaged Goods

You've won! That elusive collectible that you've always dreamed of owning is no longer a dream--it's yours thanks to your skillful bidding at an online auction. But what happens if that treasured piece arrives in…pieces?! The reality is that sometimes items get damaged in transit to their joyful owners-to-be. Don't fret--act! Here's what to do if that special something goes "bump" in the mail and how to ensure that you won't go to pieces if it happens to you.

An Ounce of Prevention or A Pound of Flesh?
Before considering what to do with a damaged auction item, consider what you can do to prevent damage and protect yourself ahead of time.

First, think about the value and/or rarity of the item you've won. If its price rivals your regular mortgage payment, or if it's more rare than hen's teeth, then it's best to use an escrow service. Not only will escrow protect your payment throughout the transaction, it also will allow you the opportunity to inspect the item before releasing funds.

Of course, don't forget to have a clear understanding of the seller's auction reputation (via his or her feedback rating) as well as his or her "customer satisfaction" policy. Are you guaranteed to be pleased or your money back? How about the seller's service agreement in the event of damage or loss? Be sure you understand these details before you bid. If you and the seller have a clear understanding up front (preferably in writing), you'll have a better leg to stand on in the event the antique chair you receive doesn't.

Next, be sure you and the seller work together to establish the best carrier for the job. Most folks use the USPS with terrific success, but if your treasured item is a bit bulky, you'll probably want to choose another carrier such as UPS. Also, you can reduce damage and loss potential if you agree to use speedier carrier services such as USPS Global Priority Mail, UPS Overnight, or FedEx Overnight (though be prepared to pay the extra cost). Furthermore, be sure the item has a tracking number so that you can follow the item's journey, usually right on the carrier's Web site.

Work out all these details with the seller beforehand and you'll both establish a shared commitment to the item's safe arrival. It sure beats trying to sort out a mess after the fact in a potentially emotionally charged exchange.

CYA (Cover Your Assets)
Remember insurance--it's the cheapest way to gain peace of mind. These days, most sellers provide insurance coverage upon request (and extra payment) from the buyer. If the item you're buying warrants it either in dollar value or personal value, don't falter here--pay the extra buck or two and get the item insured. Then again, if you've opted to have the item shipped via high-end USPS services, the insurance is included in the shipping fee. Plus, if you use a carrier such as UPS or FedEx, they often include nominal insurance coverage within the shipping fee. Be sure both you and the seller fully understand the limitations of carrier insurance and be sure to choose the proper coverage for that special item.

Picture Imperfect
However, if the item arrives and it looks as though Bluto did the Riverdance on top of it, then it's time to take action. First, if the item's outer packaging is clearly bashed in, photograph it immediately. Carefully open the package--don't destroy it any more than it already is. Sometimes, miraculously, an item will survive on the inside despite the beating it took on the outside. If the item is damaged, though, photograph it as it sits inside the packaging. Next, carefully remove it and photograph it from several different angles. Why all the pictures? They will serve as proof that the item arrived damaged and will help both you and the seller prepare to make an insurance claim. Send the images to the seller immediately (this is more easily accomplished if you have a digital camera). Explain the situation and work together to achieve resolution.

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